Half Yearly Report
September 28 2009 - 12:10PM
UK Regulatory
TIDMBMTO TIDMBMT TIDMBMTP
RNS Number : 7974Z
Braime (T.F.& J.H.) (Hldgs) PLC
28 September 2009
T.F. & J.H. Braime (Holdings) P.L.C.
("Braime" or the "company")
Interim results for the six months ended 30th June 2009
Group sales revenue for the first six months of 2009 increased by 7% from
GBP7.28m in 2008 to GBP7.77m and the company made a profit before tax for the
first half of 2009 of GBP216,000 compared to a profit of GBP125,000 in 2008 for
the same period.
In view of the steady recovery in profitability, the directors have decided to
pay an interim dividend of 1.50p per share on 16th October 2009 to shareholders
whose names are on the register on 9th October 2009.
Performance of group companies
4B division
In spite of the recession, sales by all the subsidiaries selling the 4B brand of
components to the material handling industry held up, above forecast, and ahead
of the record levels of 2008. Profitability improved, relative to the first half
of last year, due to the combination of favourable exchange rates and a decline
in the cost of raw materials.
Since the half year, there has been a noticeable decline in activity, and sales
for the full year by this division are likely to be in line with our budget, at
a level slightly below that achieved in 2008. In view of the very high
percentage of sales made in overseas markets, exchange rates will be a major
factor in determining the contribution of this division to the group result for
2009.
Pressings division
Sales for the first six months fell by 55%, compared to the same period of 2008,
due to the particular severity of the recession in the UK. The general fall in
demand was exacerbated by the initial de-stocking carried out by all major
customers as they re-adjusted their own production to match drastically lower
sales.
This situation has forced the company to speed up its strategy of moving away
from its traditional "mid-volume" general sub-contract presswork, supplied to a
wide customer base, to instead concentrating on supplying a limited number of
customers, each requiring high volumes of specialized product. The manufacture
of the products retained will be made in totally automated production cells. The
company has notified most of its' customers of its' decision to discontinue
manufacture of their requirements and since July the company has been working at
close to full capacity supplying these customers with agreed "run-out" volumes.
Very sadly, the implementation of the above strategy also requires a large
reduction in our workforce through redundancies and the company is currently
engaged in this process. However, the painful changes being made now will result
in a long term viable future for the manufacturing business and more secure
employment for those employees that remain.
Outlook
The very recent decline in demand for components supplied to the material
handling industry is a concern. Nevertheless the primary sectors into which
these components are supplied, specifically food related industries, remain
relatively immune from the recession and the company is reasonably confident
that the fall in demand will be short term.
The restructuring of the manufacturing business will reduce the significant
losses being made by this subsidiary and stem the outflow of cash that this has
caused.
Providing exchange rates remain close to current levels, the directors believe
that the result for the full year will show a continuation in the gradual
recovery of the past two years. However, given the continuation of the
recession, the pace of the improvement in profitability is likely to be at a
slower rate than was achieved in the second half of 2008.
Condensed consolidated income statement for the six months ended 30th June 2009
+-------------------------------------------+-------------+-------------+--------------+
| | Unaudited | Unaudited | Year to |
| | 6 months | 6 months | 31st |
| | to | to | December |
| | 30th June | 30th June | 2008 |
| | 2009 | 2008 | |
+-------------------------------------------+-------------+-------------+--------------+
| | GBP | GBP | GBP |
+-------------------------------------------+-------------+-------------+--------------+
| | | | |
+-------------------------------------------+-------------+-------------+--------------+
| Revenue | 7,767,714 | 7,277,564 | 15,173,891 |
+-------------------------------------------+-------------+-------------+--------------+
| | | | |
+-------------------------------------------+-------------+-------------+--------------+
| Cost of sales | 6,058,988 | 5,762,076 | 11,763,969 |
+-------------------------------------------+-------------+-------------+--------------+
| | | | |
+-------------------------------------------+-------------+-------------+--------------+
| Gross profit | 1,708,726 | 1,515,488 | 3,409,922 |
+-------------------------------------------+-------------+-------------+--------------+
| Other operating expenses | 1,457,991 | 1,363,285 | 2,833,884 |
+-------------------------------------------+-------------+-------------+--------------+
| | | | |
+-------------------------------------------+-------------+-------------+--------------+
| Operating profit | 250,735 | 152,203 | 576,038 |
+-------------------------------------------+-------------+-------------+--------------+
| | | | |
+-------------------------------------------+-------------+-------------+--------------+
| Finance expense | (144,284) | (161,247) | (312,924) |
+-------------------------------------------+-------------+-------------+--------------+
| Finance income | 109,689 | 133,623 | 264,009 |
+-------------------------------------------+-------------+-------------+--------------+
| | | | |
+-------------------------------------------+-------------+-------------+--------------+
| Profit before tax | 216,140 | 124,579 | 527,123 |
+-------------------------------------------+-------------+-------------+--------------+
| | | | |
+-------------------------------------------+-------------+-------------+--------------+
| Income tax expenses | (60,519) | (34,882) | (275,565) |
+-------------------------------------------+-------------+-------------+--------------+
| | | | |
+-------------------------------------------+-------------+-------------+--------------+
| Profit after tax | 155,621 | 89,697 | 251,558 |
+-------------------------------------------+-------------+-------------+--------------+
| | | | |
+-------------------------------------------+-------------+-------------+--------------+
| Earnings per share | | | |
+-------------------------------------------+-------------+-------------+--------------+
| Basic and diluted | 10.81p | 6.23p | 17.47p |
+-------------------------------------------+-------------+-------------+--------------+
Condensed consolidated statement of comprehensive income for the six months
ended
30th June 2009
+----------------------------------------------+-------------+-------------+--------------+
| | Unaudited | Unaudited | Year to |
| | 6 months | 6 months | 31st |
| | to | to | December |
| | 30th June | 30th June | 2008 |
| | 2009 | 2008 | |
+----------------------------------------------+-------------+-------------+--------------+
| | GBP | GBP | GBP |
+----------------------------------------------+-------------+-------------+--------------+
| | | | |
+----------------------------------------------+-------------+-------------+--------------+
| Profit for the period | 155,621 | 89,697 | 251,558 |
+----------------------------------------------+-------------+-------------+--------------+
| | | | |
+----------------------------------------------+-------------+-------------+--------------+
| Exchange differences on translating foreign | (146,101) | 1,236 | 436,143 |
| operations | | | |
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